Market Plan Research
The revolutionary technology in the engineering field has given birth to the rise of self-drying cement that unlike the former which required a mixture of water and cement in the ratio of 2 to 1 then took an approximate of 4 weeks before it dried the self-drying agent require just 16 hours before applying the flour. The Portland cement also requires periodical watering to harden the concrete properly which is a tedious and time-consuming task. The company has therefore realized the need to introduce the self-drying cement that will require less time to dry and apply the finishing floor. The paper describes the market plan of the newly developed self-drying cement that is expected to make sales globally especially in the Asian and African continents.
The Environment Drastic and persistent increase of rural to urban migration in African and Asian countries where the company main market is has led to high demand for housing and with the current cement the gap and urgency may not be realized since to build a five storey building it will require an average time of approximately half a year of drying alone excluding labor time. Consumer Behavior and market segmentation The consumption of cement is still consistent and at no one time has the demand being overrun by the supply. Consumption can only be shifted if the price of the related commodity and in this case commodity such as steel metals is easily available. They are, however, very expensive to purchase and install because they require competent and qualified technocrat to install which some of this countries are yet to start training.
Most of the countries knowledge is still in the concrete building before they venture to other means because of cost and technological inefficiency. The availability of the market of this self-drying cement will be more and readily available in urban places because of the high rural-urban migration as people find greener pastures. This will also in turn cause varying in their cost which will allow people to choose their variety of choice according to their financial abilities. Packaging, Branding, and Labeling Every product ought to have a proper and distinguished identity from other product since this is the interface between the product itself and the potential buyers. Cement itself is a chemical compound and how it is to be packed ought to realize that its exposure to extreme weather condition might change its chemical composition after it reacts with the surrounding elements if allowed to contact them (Liangyou et al.
It is a heavy commodity hence it ought to be packed in the essence that how it will be handled will not be tedious by the person who will be handling it. The fast drying cement must be packed with water and moisture proof since it is very sensitive when it gets into touch with anything of moisture content. The time when the new technological advancement will be adopted everywhere or there be government legislation the product will become obsolete and its production will cease. Place Strategy Manufacturing business incurs both production and distribution cost of the product they produce. Mostly the distribution costs of the raw material will always overrun those of product delivery hence there is a need for the place of the firm to be situated nearer the raw material source.
Proximity to social infrastructures and road networks is also a necessity to enhance the high and quick mobility of the product without the high cost and in an effective manner. The self-drying cement will require importation of some raw material so its proximity to the offshore of the ocean will be a great achievement that will go a long way to see that incurring of unnecessary raw material cost has been saved. Lifespan and durability of the cement are shorter as compared with the normal cement thus the first in first out method of stock control ought to be adopted (FIFO). Transportation Choice of the transportation mode time must take into consideration that cement is heavy, needed in bulk and must be delivered to proximate warehousing joints within a specified time.
From the production unit, the cement ought to be transported by trucks to the joints that are near the firm in a radius of 100 km. The rest of the warehouse that is far away from the firm shall be delivered their product by railway means where they will pick the cement from their respective and the nearest railway station depot. Trucks will then pick the commodity from the depot and deliver it to the warehouse for further distribution to the consumers. Institutional advertising is aimed at creating a positive image about the firm that produces the product and by this way, there will be a good image of the company product. Pricing Price of any product will always be the main determinant of the demand for the product in the market and thus the price fixing should carefully have evaluated.
Price of the cement should be arrived after deducting all the aggregated cost during production and transportation processes and marking the price at 25% of the profit above the production cost (Eryilmaz et al. The agent who acts as the wholesale should be paid with a commission of sale they make because this will promote advertising even to them so that they can generate more revenue. The low-profit margin will enable the company operates on a higher latitude as compared to the competing imported product hence making more sales which will give economies of scale to the firm. , Apland, J. , & Smith, T. M. Dynamic Pricing for Cement Manufacturing Plants in the Midcontinent Independent System Operator (MISO) (No. Agricultural and Applied Economics Association.
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